Calculate the expected profit rate

Assignment Help Business Economics
Reference no: EM13733532

A firm expects to earn $14,000 a year on $112,000 investment.

a) Calculate the expected profit rate. Show work.

b) This firm would be willing to make this investment provided the interest rate is lower than what?

Reference no: EM13733532

Questions Cloud

Describe the ethical decision-making framework : In reflecting on the limited international laws and regulations and the differences between the US and other countries, briefly discuss some guidelines (principles and concepts) that you would have in your code of conduct (ethical/social responsib..
Start with population-kick out all those not in labor forces : The following information is for the US economy in 1998: Find the US labor force, the number unemployed and the unemployment rate for 1998. Numbers are in millions. Hint: start with population and kick out all those not in the labor forces.
Investment is more stable than consumption : When you buy 100 shares of IBM it is an investment according to economists. If consumers have few durable goods, this will lower the C line, all other things equal. A corporation is a legal person separate from the owners. Investment is more stable t..
Using the concept of diminishing marginal utility : Pretend that you have just been surprised with a genuine e-mail that says you have just been selected by your favorite pizza delivery company that every day for the next month you will receive your favorite pizza for lunch and another of that same fa..
Calculate the expected profit rate : A firm expects to earn $14,000 a year on $112,000 investment. Calculate the expected profit rate. Show work. This firm would be willing to make this investment provided the interest rate is lower than what?
Describe the rise of persia and zoroastnanism : Describe the rise of Persia and Zoroastnanism. Ata minimum include Cyr, Me Great. Croesus of Lydia. Cambyses. Dan. I. Xerxes. Anmemes.
How america governing principle limit power of federal govet : How does america's governing principles limit the power of the federal government?
Establish and maintain effective working relationships : Establish and maintain effective working relationships with those contacted in the course of work. Respond to requests for information from vendors, external customers and other clients. Attend and participate in a variety of meetings and project rev..
Which battle george rogers clark captured british commander : In early 1779, American forces under George Rogers Clark captured the British commander in the West, Colonel Henry Hamilton, at which battle?

Reviews

Write a Review

Business Economics Questions & Answers

  Draw the demand curve that must exist if consumers bear

Equilibrium in the market occurs at a price of $2,500 and a quantity of 10,000. Draw the demand curve that must exist if consumers bear the entire burden of a $500-per-TV tax imposed on this market

  Number of pretzels

This would be ideal because he would have the same number of pretzels as he would soda leaving no money left to spend.

  All things being equal an increase in demand for a product

If a firm starts small and, over time, builds successively larger plant sizes or adds additional work space in an office, average total costs are most likely to

  Natural rate of unemployment for this economy

Illustrate what is the natural rate of unemployment for this economy. Assume the economy has been in equilibrium for a while also the inflation rate is 15%.

  How many current dollars will you have to invest today

Suppose that you desire to get a lump sum payment of 100,000 two years from now. Rounded to full dollars, how many current dollars will you have to invest today at a 10 percent interest to accomplish your goal?

  What is the effective interest rate of an investment

How much is this account worth after 28 years? Submit your answer to the nearest dollar. What is the effective interest rate of an investment if the nominal annual interest rate is 7.77%.

  How much is this account worth years

The interest earned is deposited back into the sacinvgs account each month. How much is this account worth 28 years? Answer to the nearest dollar.

  Evaluate the factors which managers must consider

To one side maximizing profits evaluate the factors which managers must consider when making judgment to outsource or integrate forwards/backwards considering which factor would be mainly significant for decision-making.

  Large an income tax cut is needed alternatively

Explain how large an income tax cut is needed Alternatively Explain how much more government spending would achieve the target.

  What happened to the sales tax base

The state government collected all taxes due, but its tax revenues were equal to $40 million each year. What happened to the sales tax base between 2006 and 2007? What could account for this result?

  Qa particular firm began very small they found that getting

q.a particular firm began very small. they found that getting larger was painful - it involved a lot of new

  Wear and tear on the car costs

If a firm is losses money, it might be enhanced to stay in business in the short run. Is this statement ever true.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd